Loan protection specialist ALI Group and financial services firm ClearView have partnered together to expand the range of risk solutions available to mortgage brokers and their clients.
The agreement allows brokers to offer clients ClearView’s LifeSolutions product suite in addition to ALI Group’s Loan Protection Plan. Broker clients can receive tailored coverage including total and permanent disability cover and income protection cover under a single policy.
As brokers are increasingly discussing risk and protection needs with their clients, ALI Group chief executive officer Huy Troung said that brokers were demanding a broader range of risk products to cater to their clients’ needs.
“Loan protection continues to offer convenient and affordable protection but we recognise that some borrowers such as sophisticated investors or high income home owners may want more,” he said. “With ClearView LifeSolutions, brokers can put in place more comprehensive cover.”
With ClearView as a leading independent life insurance and wealth company, Troung said the LifeSolutions product was ranked favourably by IRESS while passing ALI Group’s quality and competitiveness tests.
Under the partnership, LifeSolutions can be offered to broker clients using a general advice process after an in-depth discussion around topics such as total and permanent disability, income protection, and trauma.
ALI Group will provide training to help brokers go through this process, Ann Gallagher, ALI Group head of new business, told
Australian Broker. Gallagher is responsible for rolling out the new LifeSolutions offering to brokers.
“It’s quite comprehensive training. Initially, they’ll have to complete RG146 which is really covering compliance and what general advice is about. Then we will provide them with ClearView product and system training. Finally, ALI will provide training in terms of suggestions on how to offer the product, what to say, what you can’t say and generally helping them with the processes.”
Health questions and medical testing will be part of the underwriting process. The average premium will be around $3,000 compared to around $1,000 per person for one of ALI Group’s Loan Protection Plans.
This will give brokers the opportunity to diversify and grow their income, Gallagher said, adding that she was looking forward to supporting brokers who have the desire and client base for more comprehensive life risk.
“Brokers can expect to earn in the vicinity of $3,000 per policy in commission with LifeSolutions compared to about $1,000 for a Loan Protection Plan due to higher premiums and a more involved process.”
Commissions will be made up of upfront and trail based on the annual premiums of the ClearView products chosen, she said, with precise percentages being negotiated with each broker.
Brokers who are interested in becoming authorised to offer LifeSolutions can register through their ALI Group BDM or through the ALI Group online broker portal.
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